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The net present value (NPV) method is considered to be a better method of evaluation than the internal rate of return (IRR) method because the NPV method

a)uses time value of money while IRR does not.

b)is a more liberal method of analysis.

c)assumes that cash flows can be reinvested at the firm's more conservative cost of capital.

d)None of these options are true.

Financial Management, Finance

  • Category:- Financial Management
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